Online shopping surge delivers record revenue for UPS – ABC News
A surge in online shopping helped UPS post record revenue during the last three months of 2020
NEW YORK — A surge in online shopping helped UPS post record revenue during the last three months of 2020, the company said Tuesday.
Its stock rose nearly 5% in morning trading.
During the quarter, UPS said the daily average number of packages it delivered rose nearly 11%.
CEO Carol Tome expects pandemic-fueled online shopping habits to stick, even as more stores reopen.
“We’re in a new normal,” said Tome. “Even my relatives, who are older, are shopping online. Before, they would never do that.”
UPS said Tuesday revenue rose 21% to $24.9 billion in the three months ending Dec. 31, a record for the company.
However, it posted a loss of $3.26 billion, or $3.75 per share, as costs rose and it took charges on pension obligations and the sale of its UPS freight business. The year before, it reported a much smaller loss of $106 million.
But when adjusted to remove charges, UPS said it earned $2.66 per share, easily beating Wall Street expectations.
Full-year revenue totaled $84.6 billion, with adjusted profit of $8.23 per share. Both were records for UPS.
Shares of United Parcel Service Inc. rose $7.33, or 4.7%, to $163.59 Tuesday morning.
Published at Tue, 02 Feb 2021 14:25:28 +0000